Taxes

Transpositions occur when private individuals sell corporate shares to a controlled company and the proceeds exceed the nominal value. The Federal Court rejected a transposition but saw tax evasion as the interest-free loan was only simulated.

If a tax return is missing, authorities assess at their discretion; an objection is only possible in cases of obvious errors. The federal court rejected a late objection from a GmbH.

Provisions for uncertain liabilities are permissible; their reversal increases the taxable profit when they are no longer justified. The Federal Court confirmed the reversal of a tax provision since no objection was filed against the original assessment.

Input tax deduction allows companies to deduct paid value-added tax; the Federal Administrative Court denied this to an unsuccessful architectural project. The tax administration demanded retracted input taxes, as the incomplete project was still actively managed despite the company being dissolved.

Properties held as business assets do not allow for a lump-sum deduction, while those held as private assets do. The Federal Court ordered the reclassification of two properties long-term leased by A.A. into private assets, thus allowing the lump-sum deduction.

Maintenance contributions that are paid regularly for ongoing needs are taxable, however capital payments are not. The Federal Court demands a reassessment in the case of the tax treatment of a capital payout in an instance of separation.

A self-employed farmer utilized the privileged taxation of liquidation gains after ceasing operations; disputes regarding the tax calculation were dismissed by the Federal Court. Objections to the assessment and lack of legal remedies instruction led to no change in the tax claim.

The Glarus court saw tax evasion and qualified business assets as private assets; the Federal Court disagreed and demanded a reassessment. The Federal Court stated that each newly assessed tax year must be examined anew, regardless of previous decisions from other cantons.

The post-assessment tax procedure in Switzerland aims to reclaim missing tax revenues and can be initiated up to ten years after the tax period. In addition to back taxes, fines or imprisonment may be imposed; no guilt is necessary for the procedure.